COVID-19 Regulations: Impact of alcohol sales ban

The reinstated alcohol ban, while aimed at saving lives, will no doubt destroy jobs and the hurt the fiscus. Courtesy #DStv403

JOHANNESBURG - The ban on the sale of alcohol will worsen the country's jobless rate and spell disaster for the sector.

Industry players say a value chain of a million workers rely on an income from the sector.

Vinpro, which represents wine producers and industry stakeholders, says that 117,000 jobs were lost after the first alcohol sales ban in April.

Jobs in the already embattled restaurant industry also hang in the balance - as sit down restaurants claim alcohol sales make up a large portion of their turnover.

SUMMARY: Amended lockdown restrictions explained

The potential tax revenue loss resulting from the ban could be staggering.

At the end of April, Sars Commissioner Edward Kieswetter gave some figures for losses during the first ban.

In reply to a question by an MP during a virtual meeting of parliamentary committees, he said the under-recovery on beer was R664-million, the under-recovery on wine was almost R300-million, on spirits, it was just over R400-million.

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Source
eNCA